Main Contents of the Social Security Agreement Between Korea and The U.S.
History of the Agreement with The U.S.
- Sep. 1993 :Agreed to negotiate a Social Security Agreement between Korea and the USA
- Jul. 1994:Held the first round of Negotiation Meetings for the Agreement in the USA
- Jul. 1995 :Held the second round of Negotiation Meetings for the Agreement in the USA
- Nov. 1995 :Held the third round of Negotiation Meetings for the Agreement in Korea
- Mar. 2000 :Signed the Agreement and the Administrative Arrangement
- Sep. 2000 : Held meetings for the Implementation of the Agreement between Agencies of both countries
- Dec. 2000 :Provided a written notification to the USA that Korea has complied with all requirements for entry into force of this Agreement
- Mar. 1999 :Held meetings for the Implementation of the Agreement between Agencies of both countries
- Jan. 2001 :Received written notification from the USA that the USA has complied with all requirements for entry into force of this Agreement
- Apr. 2001 :Social Security Agreement between Korea and the USA entered into force
Applicable Legislation
- With respect to Korea,
(1) the National Pension Law and the enforcement rules and regulations applicable
(2) the Industrial Accident Compensation Insurance Law and the enforcement rules and regulations applicable(with regard to Part II only; Exemption From Dual Coverage) - With respect to The U.S.,
(1) Title II of the Social Security Act and regulations pertaining (the laws governing the Federal Old-age, survivors, and disability insurance program), except sections 226, 226A and 228 of that title and regulations pertaining to those sections
(2) Chapters 2 and 21 of the Internal Revenue Code of 1986 and regulations pertaining to those chapters
Personal Scope of this Agreement
- This Agreement shall apply to any person who is or who has been subject to the legislation of either Korea or the USA, and to the dependents and survivors of such a person irrespective of their nationality. Therefore, any person such as a national of the contracting country, a stateless person, a refugee or a national of a third country who is or has been subject to the legislation of either contracting country shall be covered by this agreement with his/her dependents and survivors.
- ※ For more information, you may refer to the sectionText of Agreement
Exemption from Dual Coverage
- ① In general, an employee is subject to the legislation of a contracting country in which he/she is employed.
- ② A self-employed person is subject to the legislation of a contracting country in which the person resides.
- ③ In the case a person is considered to be self-employed under the laws of a contracting country but considered to be employed under the laws of the other contracting country for the same activity, that person is subject to the laws of the contracting country where he/she resides.
- ④ A detached worker is exempt from coverage under the laws of the contracting country which he/she is sent to for less than 5 years if he/she is covered under the laws of his/her home country. This 5-year limit can be extended to 9 years with the proper consent between Agencies of both countries.
- ※ For more information, you may refer to the section Agreement or Guide for Exemption Application
[ Countries that employees and the self-employed pay their contributions to ]
| Type | Work Status | Coverage |
|---|---|---|
| Employee | Employed in The U.S. | |
| - You are employed and working in the U.S. | The U.S. | |
| - You are employed in Korea and sent to work in The U.S. for less than 5 years(a 3-year extension is available) | Korea | |
| - You are employed in Korea and sent to work in The U.S. for more than 5 years (without getting approval for an extension) | The U.S. | |
| employed in Korea | ||
| - You are employed and working in Korea | Korea | |
| - You are employed in the U.S. and sent to work in Korea for less than 5 years(a 3-year extension is available) | The U.S. | |
| - You are employed in The U.S. and sent to work in Korea for more than 5 years(without getting approval for an extension) | Korea | |
| Self-employed | Self-employed in the U.S. | |
| - You reside in Korea but are self-employed in in the U.S. | Korea | |
| - You reside in Korea but are self-employed in both Korea and The U.S. | Korea | |
| Self-employed in Korea | ||
| -You reside in the U.S. but are self-employed in Korea | The U.S. | |
| - You reside in The U.S. but are self-employed in both Korea and The U.S. | The U.S. |
Benefits under this Agreement
- Even though your periods of coverage in one country are not sufficient to qualify for pension benefits, you may be eligible for benefits after this Agreement has entered into force. This is possible due to totalization of coverage in both countries.
- ① Korean National Pension Benefits under the Social Security Agreement
If you have more than 18 months of insured period in Korea but do not have enough periods of coverage(e.g., 20 years for Full Old-age pension) to qualify for pension benefits under the Korean pension system, you may be able to qualify for Korean benefits by totalizing periods of coverage under the Korean pension system and the American pension system. However, those periods creditable under the American pension system, must not coincide with the periods under the legislation of Korea. Your benefit is calculated by dividing the Korean periods of coverage by the total periods of coverage and then multiplying by the Theoretical Benefit. The Theoretical Benefit is calculated based on the totalized periods in both countries. - ② American Pension Benefits under the Social Security Agreement
- If you have more than 18 months of insured period in the USA but do not have enough periods of coverage(e.g., 10 years for Full Old-age pension) to qualify for pension benefits under the American pension system, you may be able to qualify for American benefits by totalizing periods of coverage under the Korean pension system and the American pension system. However, those periods creditable under the Korean pension scheme, must not coincide with the periods under the American legislation.
- The American agency shall compute a pro rata Primary Insurance Amount in accordance with American laws based on (a) the person's average earnings credited exclusively under American laws and (b) the ratio of the duration of the person's periods of coverage completed under American laws to the duration of a coverage lifetime as determined in accordance with American laws. Benefits payable under American laws shall be based on the pro rata Primary Insurance Amount.
- ③ A person who is or has been subject to the laws of one contracting country and who resides within the territory of the other contracting country shall, together with his dependents, receive equal treatment with the nationals of the other contracting country in the application of the laws of the other contracting country.
- ④ A Korean Lump-sum refund is paid to the USA nationals. However, whether a Lump-sum refund is paid to a national of a third country depends on the reciprocity principle stipulated in the Korean National Pension Act.
- ⑤ However, since there is no provision for a Lump-sum refund in the legislation of the American Pension System, Korean people cannot be paid a Lump-sum refund from the American Pension System. Instead, the contributions to the American Pension System may be calculated toward pension payments according to the legislation of the American Pension System.
- ※ For more information, you may refer to the section Agreement or Guide for Exemption Application
Agencies of this Agreement
- As regards Korea,
- (1) National Pension Service (NPS)
- As regards the U.S.,
- (1) Social Security Administration (SSA)⇒ www.ssa.gov
